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its generating facilities by over 800,000 kilowatts, i. e., to meet the increased war demands for power in its territory.

Moreover, although a decrease in load immediately following the war was anticipated, American Gas & Electric Co. at once went ahead with its postwar plans, foreseeing a great increase in power demands over the following years.

What has happened to the demands on the company for electricity during the latter part of and since the war is shown in figure 3. At the end of the war it was predicted, in both governmental and private circles, that the tempo reached in 1945 would not be exceeded before 1948. It will be seen from figure 3 that the demand on the system of American Gas & Electric Co. passed the war peak in 1946, and in 1949 was 30 percent above the wartime peak. At present business seems to be leveling off, but Appalachian and its affiliated companies are optimistic about the future and have not slowed or reduced their expansion program,

Because of the length of time required to obtain and install new facilities, the strain on facilities during and since the war has been great. This condition was discussed frankly with the customers of the company, who were assured that, nevertheless, barring unforeseen major accidents, their loads would be carried. Actually, as stated above, there has been neither refusal nor curtailment of service,

During the period 1945 through 1948, 430,642 customers were added on the American Gas & Electric system. Of this total, 113,521 were added by Appalachian Electric Power Co. Of the latter, 61 percent were rural customers.

The growth in power demand on the American Gas & Electric system and in the generating capability to meet these loads is shown in attached table I. That table shows also the estimated power demands through 1951 and the corresponding generating capability based on the present expansion program. Clearly, the critical condition was reached in 1948—and successfully met. Gradually the margin of reserve is increasing. By the time the peak demand of 1931 is reached, the margin will be about 17 percent.

The expansion program now under way will, for the years 1945 through 1951, amount to over $400,000,000 for the American Gas & Electric system. Of the total, Appalachian Electric Power Co. will have made expenditures amounting to about $160,000,000. The complete program includes 935.000 kilowatts of new generating plant and the necessary transmission, distribution, and general plant facilities.

The new generating equipment will be installed at locations and in amounts as follows:

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1 In operation.

Appalachian Electric Power Co. will own two of the four 137,500-kilowatt units at the Philip Sporn plant. So far as is known, these, along with the others being installed on the American Gas & Electric system, will be the most efficient steam electric-generating units in the world.

In summary, Appalachian Electric Power Co. is equipped to furnish, within its market territory in Virginia and West Virginia, additional power at the most optimistic rate of growth of the demand. Its large electric plant at Glen Lyn, Va., the Claytor hydro plant on New River in Virginia, its smaller hydro installations, its large steam electric plants in West Virginia, including the ultramodern Philip Sporn plant, and the advantages of operation in coordination with the remainder of the entire American Gas & Electric Co. system afford an ample supply of power. Its heavy-capacity transmission lines to load centers assure reliability of delivery of power to its customers.

In fact, the company is looking well beyond 1951 in its planning of facilities to meet the ever-growing uses of electricity within its service areas.

M. C. FUNK,
Vice President and General Manager, Appalachian Electric Power Co.,

Roanoke, Va.

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Figure 3. NOTE.-—The peak loads, as shown in figures (kw.) for the respective years, are adjusted

to reflect elimination of interruptible on-peak deliveries.

TABLE I.-American Gas & Electric Co. growth in generating capability and

demand

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1 Estimated.
2 Actual demand of 60-minute duration, including interruptible power.

Mr. CLAYTOR. The committee might also be interested to know what we have done for the farmers.

We have at the present time about 303,000 farms that we are supplying power to, and just last year, 1948, our one company, the Appalachian Electric Power Co., added 28,000 farms to our system, and we are looking for 28,000 more farms. Thank you very much.

Mr. PICKETT. Are there any questions of Mr. Claytor?
Thank you, Mr. Claytor.
(At this point, there was discussion off the record.)
The following communications were subsequently submitted :)

ROANOKE, VA., May 26, 1949.
Hon. WILLIAM WHITTINGTON,
Chairman, Works Committee,

House of Representatives, House Office Building: As one who in general principle dislikes to see our Government and business in competition with privately owned industry, I wish to express the hope that you will use your efforts to defeat a bill which provides for the dam in Roanoke

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